Auction vs Listing

Car auctions are in themselves nothing new, but in recent years the market for various types of collector's items has begun to shift towards online auctions instead of traditional advertising. 

In this newsletter we want to take a closer look at why this is the case and why this type of buying and selling model suits enthusiast cars and motorcycles so well. We will also highlight important differences between buying at auction compared to a more traditional listing solution.

At an auction, unlike in a traditional transaction, it is the market that has the final say when it comes to pricing. It is what the market is willing to pay on the given day that dictates the value of the item at that moment. If there is more than one interested bidder, there is a good chance that the value will rise further compared to what the market value was estimated at in advance. We love this and think it's a transparent and democratic way to sell items while also taking the temperature of the market. 

Of course, like many other auctioneers, we work with reserve prices to protect sellers from being forced to let go of their item at a level they are not comfortable with, but it is still the bidding and the demand among bidders that ultimately gives an indication of the item's value. Furthermore, all statistics show that if you have a sufficiently sought-after item, the reserve price is irrelevant since demand already exists among buyers, and many items have actually performed better as so-called "No Reserve" listings, even though this can of course mean increased risk-taking. 

This is a major difference from a traditional solution where it is the seller themselves who sets their price and must then test its relevance in the market themselves. Often resulting in a haggling situation.  

The market for enthusiast cars is large both in Sweden and abroad, but it also varies greatly from item to item. This makes standardised pricing difficult. By instead letting the market announce its interest and willingness to pay for each specific item, every auction gets its own chance to find its unique buyer. 

At Bidders Highway we primarily have time-limited auctions, in addition to the items listed under "Buy Now" where you can still buy at a fixed price. This auction model is a combination of traditional advertising and a hammer auction where the item is to be sold immediately. 

Our auctions run for 7 days, which gives interested buyers the opportunity to calmly carry out their research and then place a bid without stress. At the same time, it gives the seller assurance that if the reserve price is met, the item will be sold within the specified period, unlike a listing solution where the same process can take several months.

Peace of mind 

When you advertise your own item, it often means that you have to receive potential buyers for viewings, you must also be prepared to answer questions and overall be responsible yourself for the moderation and sale of your item. During an auction, much of this is handled by an intermediary. At Bidders Highway, it is entirely up to the seller whether they want to show their item during an ongoing auction. This happens very rarely given the detailed documentation of around 150 photos, long texts, etc. that accompany each listing. For many, this provides great peace of mind in not being able to be contacted directly, and that the car or motorcycle remains safe and secure until the auction has ended and the price has been determined. 

Last but not least, we notice that many people, ourselves included, love the element of excitement that comes naturally with an auction. There is a dynamic when there are many interested parties, both for buyers and sellers, and it often creates a memorable experience that you then carry with you and remember together with the purchase or sale of an item you have long wanted.

We believe this digital auction model is the future, and we are very much looking forward to an eventful spring when many fine items will go under the digital hammer and find new homes.

See you soon.